Fdi in Higher Education

8/8/2019 Fdi in Higher Education

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FDI IN

HIGHER

EDUCATION

Presented By:

Amanpreet Kaur

Srishti Seth

Vivek Sharma

Ashish Tripathi

Divyashree Bajpai

Aditi Sudan

Srinivas Reddy


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HISTORY OF HIGHER EDUCATION ININDIA

Knowledge was preserved and propagated throughoral tradition.

Students were supposed to reside with the teacher

and his family and the students were expected toshare the daily chores of the teachers family

In ancient times India was known to have been ahome to the oldest formal universities in the world

Establishment of modern universities in India wasfirst recommended by the Woods EducationDespatch.


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Various universities formed during the freedom

struggle :-

Banaras Hindu University - 1916,

Patna University -1917,

Osmania University - 1918,

Lucknow University - 1920,

Aligarh Muslim University - 1920,

Delhi 1922, etc.


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HIGHER EDUCATION IN INDIA

50% of Indian Population is in age group 20-30years, which makes India an attractive market forhigher education

Higher Education Market, over last two decades hasgrown @ CAGR of 5-6% and is expected to grow at12% per annum in the coming years.


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DEMAND SUPPLY GAP

Increase in willingness to spend on education

Rise in purchasing power of people.

Will lead to an increase in GER in Higher Education

from current 11% to 15% by 2015.

Current expenditure on higher education touchingUSD = 6.5 billion and major share of Govt.expenditure focusing on primary education there is

now a need for private players to take entry in theeducation market


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PRIVATE SECTOR IN EDUCATION

Current private education market of US$38 billion is

expected to grow to US $ 108 billion in a decade

Private Sector has shown a leading presence indisciples like engineering, medical and management

Infrastructure required to develop a higher education

institute is very capital extensive, hence many private

players deter from entering the market and expanding

operations


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PUBLIC PRIVATE PARTNERSHIP MODEL

Funding provided by the Private institutes obviatesthe needs for Public Funds

Vast potential to increase higher education capacity

without diluting education standards Education Institutes continues to run as a not-for

profit entity, as is the objective of our Right toEducation

Education Institute over a period of time is able toacquire developed infrastructure


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The proportion of our population, in the age group18-24, that enters the world of higher education isaround 7 per cent, which is only one-half theaverage for Asia.

The governments share in overall educationexpenditure in 1983, which was 80 percent, hasgone down drastically to 67 percent in 1999.

At the same time, private expenditure on educationhas increased by about 11 times in the last 15 years.

NEED FOR FDI


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Source: Pawan Agarwal, June 2006, Higher Education in India: Need for Change,

ICRIER Working Paper, No. 180, Indian Council for Research on International

Economic Relations.


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The NKC recommends creation of 1500 universitiesnationwide, that would enable India to attain a gross

enrolment ratio of at least 15 per cent by 2015. Various studies have pointed out that no country

could become an economically advanced country, ifthe enrolment ratio in higher education is less than

20 percent. There were 4, 56,742 teachers in 2003-04, which

meant the number of students. Per teacher hasrisen from 12.6 in 1965-66 to 21.8 in 2003-04.


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Polices For Introduction Of FDIs In

Education Field Initially foreign investments were throughautomatic routes & was unregulated.

Good institutions were given incentives as

compared to sub-standard institutions. Rules those were applies to domestic

institutions were also applied to foreigninstitution.

Bill was proposed to regulate the entry,operation & maintenance of foreigneducation.


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Outlines Of The Foreign

Educational Institutes Bill Institution should be endorsed from the

embassy.

Endorsement can be refused if it is not inthe interest of the country.

Foreign institutions guilty of misleading thegovernment would be liable for a hefty fine.

A time-bound format to grant approval toforeign educational institutions to set up

campuses in India.


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They should be registered with theUniversity Grants Commission (UGC) or

any other regulatory body.

They should deposit Rs 50 crore as corpusfund and cannot take back the surplus

generated from education activities.


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PROS OF FDI IN HIGHER EDUCATION

Foreign institutions can bring quality programs withmarket orientations.

Updated curricula and teaching learning processes.

Improved managerial and organizational skills to runthe institutions.

Promote competitiveness in education system.


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CONS OF FDI IN HIGHER EDUCATION

None of the foreign institutions has invested money inthis country.

Offering what are called "twinning programmes or are"franchising" their degree programmes. Hefty fees, without proper supervision and qualitymonitoring. Motive seems to be only commercial.

Exploitative environment in education institutions.


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Kind of investors who are likely to participate in

our higher education system:

The top-tier institutions will only be interested incollaborating with some of India's outstandinginstitutions in research and development, for faculty

exchange, in conducting summer schools, and soon.

Only the second- or third-tier institutions abroad may

intend setting up shop in this country offeringprogrammes.


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EFFECT OF FDI

Quality

Competition More Revenues

Better Infrastructure

New methodology

Global Exposure


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CHALLENGES

Unregulated Flow Of Foreign Capital

Cultural Imperialism

Qualities Differences

Political Views


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EXPERIENCES & VIEWS OF OTHER COUNTRIES

Singapore- Wants To Be Education Destination

China- Very Strict Regulations

Malaysia- Foreign Players For Non-Malays EthnicGroup

Indonesia- Importance of Accreditation


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THANK YOU!!

Documents

Fdi in Higher Education